My portfolio. Does this look ok?

Can someone let me know some worthy international industrial LICs that I can check out?

What are you all investing in for international? Even if it's not an LIC..

I only have some PMC at the moment..

-Frank

 

You could try this thread - Investing in international equities [LICS / ETFs / direct]

 

Ah just what I was looking for, thanks

 

So you sorted Frank???

 

How do you mean, am I sorted in what I'm investing in generally since the start of this thread or do you mean the international investment question I asked a few weeks ago?

-Frank

 

Both? I am not sure what @MTR is asking about but I would be interested in the answer to both questions if you are happy to share.

 

I think both, and how the shares purchasing and investing is progressing generally. I'm sure there are many quiet watchers of these threads interested in the discussion and outcomes achieved.

 

How did you know!!!

 

Well, I haven' done anything other than buy some ARG MLT and PMC.. $20k of each..

I've become a bit stuck, I wanted to get professional opinions so I sourced 2 financial advisors who know Peter Thornhill and understand his style of investing..I said to them both why can't I just go and buy MLT, BKI, AFI, WHF, ARG, PMC and maybe diversify with some others and be done with it? The first advisor didn't really respond other than 'Lets see'. The second said 'Thornhill is a bit too old school and what he did worked for him at the time and still works well and he's done well but it's not the best thing for you Frank'

I asked them both to put together a statement of advise for me for a one off fee each.. I wanted to compare.

So they put together a portfolio for me and the first was kind of what Thornhill would do but the second was not, but the second was much more diversified than the first portfolio and also included some assets that are defensive by nature which the first didn't.. But also included a lot of managed funds which look expensive.

So yeah I haven't done much else other than quietly reading the threads on here


-Frank

 

Thanks for your insights @Frank Manno , it is interesting to understand how advisers take the same foundation (PT approach) and apply it (or not) for others.

With the second adviser, where it appears they used the PT base, then built on/diversified it, have you had the opportunity to ask why those choices? (I understand it is a one off fee so maybe not the opportunity). I'm thinking for you to a) understand and b) to go through and use, and use that adviser again, you need to understand why those shares/funds etc were chosen. It is interesting they included defensive assets, did they explain why they would include these in the mix? Capital protection?

Thanks for your insights.

 

The second advisor although he knew I wanted mainly LIC's didn't use the PT base because only around 15% of the portfolio is LIC. Their reasoning was that the portfolio should be diversified using some ETF's, some LIC, some managed funds, some term deposits, an SMA and a few direct shares..

But then you could argue that being too diversified could be bad as well.

Yes capital protection and for there to be income generated when the sharemarket is in a downward cycle or during the next GFC. . But the defensives also perform well during good times. For example there are a few Hybrid Securities in the mix that will always pay approx. 5.2%

I could share both portfolio's here if you are interested in having a look.


-Frank

 

Hi Frank,
Yes please, share away.
Would be greatly beneficial for many.
Thanks

 

That would be great if you wouldn't mind. The diversified portfolio seems complicated, coming back to understanding the 'why' so it can be managed.

 

Hi Frank,

By all means share the portfolios but only if you’re comfortable doing so and tell us what has you stuck in terms of moving forward. Simple is generally the best approach. Hopefully views from others here might help you move forward.

 

It would be good to see the machanics of your portfolio Frank after all the time stress and above all entry costs and the ongoing costs you have put into this..A simple way is always as GFC mach 2 is always just sitting there waiting if you understand the mechanics of a boom it is also very important to understand and vital to understand mechanics of a downwards slump ..Go back and read what happened in Somersoft in the lead up
to the first GFC and depth of misery that happened that quickly for those when greed turns to fear and they sell at the bottom and never ever post again..

 

Thanks for the update

More funds etc doesn't equal more diversified. Adding more can be tilting or concentrating in a certain direction.

 

Ok well after much discussion with both of these financial advisors here is what they came up with for me.

They both assessed my risk profile at being Balanced to Moderate Growth at 70% and 30% and they both understand that I need retire on this and that these are life savings I am playing with.

PORTFOLIO #1
Direct Shares
ANZ (ANZ) $14,400
Aurizon (AZJ) $14,400
Brambles (BXB) $14,400
Coca-Cola (CCL) $14,400
Commonwealth Bank (CBA) $14,400
Crown Resorts (CWN) $14,400
Greencross (GXL) $14,400
Primary Health Care (PRY) $14,400
Qube (QUB) $14,400
Suncorp (SUN) $14,400
Santos (STO) $14,400
Telstra (TLS) $14,400
Wesfarmers (WES) $14,400
Westfield (WFD) $14,400
Westpac (WBC) $14,400
Total $216,000

LIC’s and ETF’s
Argo Investments (ARG) $252,000
Milton Corporation (MLT) $252,000
Vanguard US Total Market (VTS) $180,000
Vanguard Australia Fixed Interest (VAF) $180,000
Vanguard All World-exUS (VEU) $80,000
iShares Asia ETF (IAA) $40,000
Total $984,000

-----------------------------------------------------------------------------------------------

PORTFOLIO #2
Direct Shares
Commonwealth Bank (CBA) $24000
Coca Cola (CCL) $24000
Sigma Healthcare (SIG) $24000
Santos Limited (STO) $24000
TOTAL $96,000

Managed Funds
Winton Global Alpha Fund MAQ0482AU $24000
Ironbark LHP Diversified Investment Fund HFL0104AU $24000
Macquarie International Infrastructure Securities Fund (H) MAQ0432AU $24000
Standard Life Investments Absolute Return Global Fund Strategies Trust - ETL0134AU $24000
Vanguard Wholesale International Property Securities Index Fund (Hedged) VAN0019AU $24000
Vanguard W’Sale International Shares Index Fund (Hedged) $48000
MLC Wholesale Global Shares Fund - MLC0261AU $48000
Magellan Global Fund (MGE001AU) $48000
TOTAL $264,000

Defensive Managed Funds
Janus Henderson Tactical Income Fund - IOF0145AU $36000
UBS Income Solution Fund - UBS0003AU $36000
Macquarie Income Opportunities Fund - MAQ0277AU $36000
Pimco Global Bond Fund - Wholesale Class ETL0018AU $48000
TOTAL $156,000

SMA
Antares Dividend Builder Model Portfolio NUN0052AU $120000
TOTAL $120,000

ETF
Vanguard Australian Property Index ETF (VAP) $24000
iShares S&P Small Cap ETF (IJR) $24000
iShares Europe ETF (IEU) $36000
iShares MSCI Emerging Markets ETF - (IEM) $36000
iShares MSCI Japan ETF (IJP) $36000
iShares S&P 500 ETF - IVV $60000
TOTAL $216,000

LIC
Australian Foundation Investments (AFI) $60000
Argo Investments (ARG) $60000
TOTAL $120,000

Defensive - Hybrid Securities
Commonwealth Bank of Australia (CBAPD) $36000
National Australia Bank (NABPC) $36000
TOTAL $72,000

Cash Account
$48000

Term Deposit
NAB $84000

And I will be keeping $250k in Savings account or also term deposit.


-Frank

 

Very interesting thread, thanks for sharing Frank.

I found this thread on the old somersoft forum which discusses financial planners and their incentives which i thought was interesting:
confessions of a financial planner student
I wonder why the FP's have recommended direct shares for you? Would it be so that you can't just set and forget? Compared to the Buffet strategy of just buying the market it seems like adding work for not much reason (other than to give the FP a salary).

 

Interesting to see the different recommendations, thanks for sharing.